The financial authorities will establish a bridge insurer (tentatively named Yepyeol Insurance) to facilitate the restructuring of MG Insurance. The bridge insurer will maintain and manage contracts until the contracts of MG Insurance are transferred to five different non-life insurance companies. The sale of MG Insurance will be pursued separately.
The Financial Services Commission announced on the 9th that it has approved a conditional license for the insurance business of Yepyeol Insurance at its regular meeting to facilitate the restructuring of MG Insurance. Yepyeol Insurance will be established with 100% investment from the Korea Deposit Insurance Corporation (KDIC) and will operate for only two years.
Yepyeol Insurance will receive all assets and liabilities, including the contracts held by MG Insurance, up to the third quarter of this year. Following this, due diligence will be conducted to transfer the contracts to five non-life insurance companies again. Previously, the financial authorities estimated that the transfer of contracts would be completed by the end of 2026.
Yepyeol Insurance can engage in insurance business limited to maintaining and managing contracts during the due diligence process. To facilitate this, Yepyeol Insurance plans to hire some personnel from MG Insurance and acquire physical facilities such as IT systems. The five non-life insurance companies that will receive the contracts will also participate in the management of Yepyeol Insurance. However, since it is a temporarily operating bridge insurer, it is not required to meet the solvency margin ratio standards.
The financial authorities will pursue the sale of Yepyeol Insurance targeting potential acquirers under the auspices of the Korea Deposit Insurance Corporation (KDIC), separate from the contract transfer procedures. If a suitable acquirer appears, the sale of Yepyeol Insurance will be pursued; otherwise, the contract transfer will proceed as scheduled.
The Financial Services Commission said, "We will efficiently proceed with the schedule for the restructuring of MG Insurance to avoid delays," adding that it plans to conduct all procedures swiftly and transparently, respecting agreements with stakeholders. It also noted, "We will make our best efforts to fully protect policyholders in all processes and minimize any inconvenience related to insurance services."